Bringing house prices down with a Land Value Tax. A land value tax (LVT) makes housing affordable again by shifting the tax load off working people and onto land. The tax applies to land only (not any buildings on that land). This encourages high-density housing and discourages urban sprawl, land-banking or large rental property portfolios, which helps force down house prices. An LVT will retool our economy for innovation and production, instead of rent-seeking and paper profits. This will help drive real economic growth, by redirecting investment away from housing and towards business. For ‘land rich, cash poor’ Kiwis like farmers and retirees, exceptions and deferrals will apply.

[–] Ilovethebomb@lemmy.nz 1 points 1 month ago (2 children)

they're flogging a dead horse with the LVT, in my view. It's been proposed many times, by many people, and the counter argument is the same, that it screws over retirees who are asset rich, but have a limited income, and for whom living in a paid off house was part of the retirement plan.

Yes, I know it's only land value, and there are mechanisms to delay paying, but it's going to be a massive loss of equity.

Labour were smart enough to leave the family home out of it in their CGT proposal.

[–] absGeekNZ@lemmy.nz 1 points 1 month ago (1 children)

So how do you propose to fix it?

Labour wasn't "smart" to leave out the family home. They just knew that it isn't politically tenable for a NZ party to go against the property market. Even though they know that is exactly what we need.

[–] Ilovethebomb@lemmy.nz 1 points 1 month ago

They just knew that it isn't politically tenable

I don't see the difference myself. And one solution is to make your primary residence exempt, and perhaps a lower rate for farm land.

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